Morara Kebaso speaks out amid KRA's probe into Sh27 million tax evasion claim

Political activist and businessman Morara Kebaso has expressed frustration over the way the investigations into the alleged Sh27 million tax evasion are being handled.

The chairman of the Morara Group of Companies accused state agencies, including the Kenya Revenue Authority (KRA), of targeting him for his outspoken views on corruption and mismanagement in Kenya.

In a statement posted on social media platforms on Thursday, Kebaso criticised the public nature of the tax investigation, emphasising that tax matters should remain confidential.

"Tax matters are private and confidential. I don't know why mine is being investigated in the media," he said, affirming that he has always been willing to pay taxes as required by law.

Kebaso alleged that the investigation is politically motivated, labelling it as a "weaponised" attack aimed at silencing his advocacy for truth and accountability.

"This is a clear attempt to push me to my knees so that I agree to collaborate with corrupt leaders in the mismanagement of our country," he said.

Despite these claims, Kebaso expressed confidence that Kenyans can distinguish between genuine investigations and politically driven attacks, vowing to continue speaking out against corruption.

"Kenyans are very wise; they can differentiate a genuine tax investigation and a political witch hunt. I will continue to speak truth to power without fear," he added.

The investigation is centred on allegations that Kebaso's businesses owe Sh27 million in unpaid taxes.

The Kenya Revenue Authority claims that Kebaso's companies, including Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited (Blacksmith Morara Limited), and Backtent Security Limited, have either declared no income or failed to file tax returns despite evidence suggesting substantial financial activity.

KRA's analysis of bank accounts associated with these businesses reveals deposits totalling approximately Sh186.3 million over the last three years, primarily from M-Pesa paybill services.

The KRA claims that Morara Home Furniture accounts for nearly 80 per cent of this amount. According to KRA, some of these businesses should have been registered for Value Added Tax (VAT), as their turnover exceeded the threshold of Sh5 million annually.

The authority estimates that Kebaso owes Sh25.7 million in VAT and Sh1.4 million in income tax, amounting to a total of Sh27 million in unpaid taxes.

Kebaso, however, clarified that he is not the owner of Igrow Digital Enterprise, which is also under investigation.

In a separate post, he explained that the business was registered in 2014 by a group of university schoolmates and was intended to start a dog-breeding venture.

He further revealed that the business did not take off due to lack of funding and the group's unsuccessful attempts to secure money from the government's Youth Enterprise Fund.

As part of the investigation, KRA has requested that Kebaso avail various documents related to his businesses, including bank statements, invoices, asset registers, and financial records.

He has been summoned to KRA's Nairobi offices on Monday, January 13, to respond to the inquiry.